Tuesday, March 2 2021


Market continues winning march

Update: January, 05/2018 - 06:00
Both stock indices on the two stock exchanges extend gains for a third day since early 2018. — Photo ndh.vn
Viet Nam News

HÀ NỘI — Shares extended gains on the two national stock exchanges as rising capital inflow was poured into the banking and energy sectors on high Q4 earnings expectations and positive development on the global oil market.

On the HCM Stock Exchange, the VN-Index added 1.4 per cent to close Thursday at 1,019.75 points. This was the third straight gaining session this year with total growth of 3.6 per cent.

Large-cap stocks remained the market engine. Twenty four of the top 30 largest shares by market value and liquidity on the HCM City’s exchange gained value and only four lost.

Banks led the gainers when six of seven listed banks increased. VPBank (VPB) expanded for six sessions in a row, adding 3.6 per cent in value to VNĐ44,900 (US$1.97) a share. It has increased nearly 13 per cent in the last six trades.

The Big Three (three largest banks by market value) – Vietcombank (VCB), Vietinbank (CTG) and BIDV (BID) – rose 0.9 per cent, 3.6 per cent and 2.8 per cent, respectively.

The latest data of the National Financial Supervisory Commission revealed that bad debts in the whole financial system decreased substantially in 2017, down from 11.9 per cent in early 2017 to 9.5 per cent by year-end, concentrating in small and weak banks.

Apart from banks, oil and gas stocks also attracted heavy investment thanks to rising global oil prices.

Major companies including PV Gas (GAS), PetroVietnam Drilling and Well Services (PVD) and Petrolimex (PLX) rallied between 2.5-4.7 per cent each.

Ending Wednesday’s trade, the US light crude oil (West Texas Intermediate) increased 2.1 per cent to $61.63 per barrel for February contracts while Brent crude edged up 1.9 per cent to $67.84 per barrel.

Overall market condition was positive with 198 stocks rising, 103 falling and 48 closing flat. Nearly 153 million shares worth VNĐ6.2 trillion ($272 million) were traded in HCM City’s market.

According to Quang Võ, an analyst at Viet Dragon Securities Co, total trading value continuing to be more than VNĐ5 trillion in the last three sessions without impact from any special events signalled high investor expectation for another fruitful year for the stockmarket.

Meanwhile, analysts at Bảo Việt Securities Co (BVSC) predict the VN-Index will likely advance in the next sessions, driven by strong capital inflow in large caps, especially in those with good Q4 earnings prospects.

“However, profit-taking selling pressure will also rise following the rally which will lead to wide divergence in the market,” Trần Đức Anh, a BVSC’s analyst, wrote in a report yesterday.

On the Hà Nội Stock Exchange, the HNX-Index also edged up 0.26 per cent to end at 119.50 points, lifting the three-day gains to over 2.2 per cent. — VNS




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